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To: Liberty Tree Surgeon

For a few years only part of my income was charged SS tax because I was over the maximum. But they substantially increased the maximum taxable so that ended pretty quickly.

The good news is that your SS payments are based on what you put in, at least to a degree.


60 posted on 02/03/2021 11:14:40 AM PST by cuban leaf (We killed our economy and damaged our culture. In 2021 we will pine for the salad days of 2020.)
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To: cuban leaf
The good news is that your SS payments are based on what you put in, at least to a degree.

Not really any good news at all. It's $0.15 on the $1 for anything over $6,002/month of income, but you're still paying 100% of the tax. From the SSA data below, you can see the awesome benefit someone gets if making just shy of $12,000/yr (90%), and then the complete rip-off it is when you make over $72,000/yr. Note too: this is the same # no matter how many quarters you actually put in, as long as you put in the minimum needed to earn a full benefit.

From the SSA.GOV site: https://www.ssa.gov/OACT/COLA/piaformula.html

For an individual who first becomes eligible for old-age insurance benefits or disability insurance benefits in 2021, or who dies in 2021 before becoming eligible for benefits, his/her PIA will be the sum of:
(a) 90 percent of the first $996 of his/her average indexed monthly earnings, plus
(b) 32 percent of his/her average indexed monthly earnings over $996 and through $6,002, plus
(c) 15 percent of his/her average indexed monthly earnings over $6,002.

61 posted on 02/03/2021 2:44:52 PM PST by Liberty Tree Surgeon
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